Today's news headlines: 

‘Brexit bureaucracy is hitting UK food and drink sales to EU, sector warns’. A year on from leaving the EU, the UK is still very much entangled in a web of bureaucracy. The food and drink sector are reported to be suffering, with total exports to the EU down from £1bn to £580m—a 40% decline year over year. Although the pandemic will have had a part to play, problems at the border such as inconsistent checks and delays have made it that much harder for these businesses to manage their supply chain effectively and have consistent expectations on the total cost to export to the bloc. (Financial Times) 

‘White House says capital gains tax rise will hit only richest 0.3%’. Joe Biden is now looking to fulfill another promise made in his 2020 presidential campaign, to increase taxes. The proposals will see capital gains and dividends, normally taxed at 20%, to be hiked all the way to 39.6% and be treated as ordinary income. However, the total tax rate will be closer to 43.4% with the inclusion of the surtax on investments, which was introduced during Barack Obama’s second term as President. (Financial Times)

Today's events, rates, and data 

• On Friday, the FTSE 100 closed 0.01% higher despite positive retail sales out of the UK and strong PMI data. The S&P 500 finished the day 1.09% higher with PMI data seemingly having more of an impact. Cable is nudging higher today, moving above $1.39 while EUR/USD is above $1.21 in early trading.

Today's events

Japan SPPI y/y: 0.7% vs 0.0% last month
German ifo Business Climate: 9:00am
US Durable Goods Orders m/m: 1:30pm

Interbank rates

GBP/USD: 1.3901
GBP/EUR: 1.1486
EUR/USD: 1.2106
USD/CAD: 1.2458

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.